Manchester City have emerged victorious in their legal battle with the Premier League, following a landmark ruling by an independent tribunal that deemed the league’s financial regulations to be “unlawful, void, and unenforceable.”
The ruling is separate from City’s ongoing case concerning 130 alleged financial breaches. However, it specifically overturns the controversial Associated Party Transactions (APT) rules, which were introduced to regulate sponsorship deals linked to club owners from December 2021 to November 2024.
The decision could have far-reaching implications for the Premier League, as it may pave the way for significant compensation claims from clubs such as Manchester City and Newcastle United, both of whom had been affected by the restrictions imposed by these regulations.
City’s legal challenge was fueled by frustration over the Premier League’s rejection of proposed commercial agreements with key sponsors, including Etihad Airways and First Abu Dhabi Bank, in 2023. The club argued that the rules unfairly targeted their financial model and restricted their ability to negotiate lucrative deals.
As part of the tribunal’s ruling, the Premier League has been ordered to cover an estimated £20 million in legal costs, marking a significant financial blow for the league.
Despite this legal defeat, the Premier League remains adamant that its newly introduced financial regulations—approved via a club vote in November—will remain in force and unaffected by this tribunal decision.
With this ruling, Manchester City have not only secured a legal victory but have also challenged the Premier League’s governance structure, potentially reshaping financial fair play regulations in English football for years to come.